The cost of generating electricity in Pakistan increased 14 percent year-on-year to Rs. 9.0 per unit in June 2026, even as overall power generation remained subdued and the country’s fuel mix shifted significantly away from RLNG toward imported coal and nuclear energy, according to NEPRA data compiled by Topline Research.

Electricity generation totaled 13,430 GWh in June, down 2 percent from a year earlier but 6 percent higher than in May. For the full fiscal year, generation increased just 1 percent to 128,696 GWh, reflecting sluggish electricity demand despite improving economic activity.

The rise in fuel costs was primarily driven by more expensive RLNG and furnace oil generation. However, on an annual basis, the average fuel cost eased 1 percent to Rs. 8.4 per unit in FY26, supported by greater reliance on lower-cost sources, including hydropower, nuclear energy and imported coal.

Pakistan’s power mix also changed markedly during the year. RLNG-based generation fell 23 percent, reducing its share of total generation from 17.5 percent to 13.3 percent, while electricity generated from imported coal surged 52 percent, increasing its share from 7.1 percent to 10.7 percent.

Hydropower remained the country’s largest source of electricity, accounting for nearly 31 percent of total generation, while nuclear power contributed 17.7 percent, reinforcing its role as a major low-cost baseload source. Wind generation rose 17 percent, whereas solar generation declined 9 percent during the fiscal year.